Gold price predictions: Will Gold rate touch historic $4,000-mark?

Gold prices today breached $3,200 an ounce for the first time. Prices are up more than 22 per cent so far this year. UBS and Commerzbank raised their gold price forecasts on Friday, joining other investment banks as investors drive the safe-haven metal to record highs amid the economic uncertainty sparked by U.S. President Donald Trump's trade policies, as per a report.

Trump's tariffs have roiled financial markets, stoking fears of inflation and a global recession. While he has paused most duties, he has hiked those on China to 145 per cent, prompting Beijing to lift its tariffs on U.S. goods to 125 per cent, Reuters reported.

"We expect gold's rally to extend into next year and for prices to stabilise at higher levels further out," UBS analysts said in a note, forecasting prices will hit $3,500/oz this year.


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Commerzbank also raised its gold price forecast for the end of this year to $3,000, from $2,850, noting that assets under management in gold exchange-traded funds were a record $345.5 billion at the end of March.

Earlier this week, Deutsche Bank raised its average gold price forecasts for 2025 and 2026 to $3,139 and $3,700 per ounce respectively.

Central bank gold buying has also been a factor in the price surge this year. In 2024, global central banks together added more than 1,000 tonnes of gold to their reserves for the third year running, according to the World Gold Council. Top gold consumer China's gold reserves stood at 73.7 million fine troy ounces at the end of March, up from 73.61 million ounces at the end of February, as the central bank bought the precious metal for a fifth straight month.

FAQs

Q1. Is there any impact of US Dollar on Gold prices?
A1. The US currency -- Dollar -- has retreated strongly against main rivals in the wake of Trump's tariffs, further boosting gold's attractiveness.

Q2. What are global central banks doing?
A2. In 2024, global central banks together added more than 1,000 tonnes of gold to their reserves for the third year running, according to the World Gold Council.